A budget which includes extra spending on schools and other key services was approved by Newcastle City Council.

Council tax bills will rise by 4.3 per cent, more than double the rate of inflation, but Labour leaders say that over the next three years an extra &#xA3;84 million will be spent improving services following a Government cash injection.

But the budget was attacked by opposition Liberal Democrats who claim families aren't getting value for money. They want more spent on nursery education, libraries and policing the city centre and claim council taxes have risen by 26 per cent since the Labour Government came to power in 1997 against 11 per cent for prices.

Lib Dem leader, Coun Peter Arnold said: "Once again the people of Newcastle have been let down by Labour. Despite all the spin and hype the city has had to endure more than 20 years of cuts in local services."

Labour leader Coun Tony Flynn, said council taxes have risen by an average of five per cent a year since 1997. At least &#xA3;84 million extra will be ploughed into priority areas such as education, looking after children, and neighbourhood renewal over the next three years and this could rise to &#xA3;100 million.

In addition, &#xA3;100 million will be spent on capital projects to improve schools, housing and council buildings.

New council tax charges will be Band A, &#xA3;700; Band B, &#xA3;816; Band C, &#xA3;933; Band D, &#xA3;1,049; Band E, &#xA3;1,283; Band F, &#xA3;1,516; Band G, &#xA3;1,749; and Band H, &#xA3;2,099.